Verizon reports 21% drop in profits, plans to sell the Palm Pre in January

Mon, Jul 27, 2009

Finance, News

Verizon reported its quarterly earnings earlier today and while overall revenue was up 11.3% to $26.9 billion, profits fell 21.2%.  Verizon’s lack of a strong smartphone in its fleet was apparent when it disclosed that the average revenue it receives per customer comes in at around $51.  This is a slight drop off from what Verizon reported last year, and significantly lower than the typical monthly fees normally associated with smartphones.  By way of comparison, it’s estimated that the average monthly bill of iPhone users comes in at around $90 a person, and while AT&T’s average is undoubtedly lower on the whole, Verizon’s numbers underscore it’s need to bring more smartphones under its umbrella.  And yes, it does have the BlackBerry Storm, but that hasn’t exactly been a runaway hit.

While Verizon does offer a number of full screen phone options, it still lacks a multi-touch smartphone in the truest sense of the word.  That being the case, Verizon is reportedly planning to start selling the Palm Pre in January, after the device’s exclusive contract with Sprint expires.

During its earnings conference call, Verizon president Denny Strigl heaped some praise upon the iPhone for its ripple effect across the sea of smartphones.

When you think about what Apple has done in bringing the iPhone into the marketplace, it truly has accelerated innovation. And as we talk to all of our manufacturers, everybody has come out with their own iconic device, and I think that this has been very good overall for our customers.

iPhone customers currently fed up with AT&T are of course hoping that it’s not too long before the iPhone becomes available on Verizon, the nation’s largest and most reliable cell phone carrier according to many.  While it’s still too early to tell, some reports have pegged a Verizon enabled 4G iPhone to hit the streets sometime in 2010.  But with Verizon not being the type of company to play by anyone else’s rules, we’ll have to wait and see if they’re willing to bend for Apple.

Related: What Verizon’s planned proprietary app store tells us about the iPhone switching carriers



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